Guggenheim analyst, John Heinbockel, reiterated his Buy rating on shares of Five Below (NASDAQ: FIVE) and raised the price target to $60 after the company delivered solid 1Q upside on the back of stronger comps and healthier gross margin expansion. Total sales rose 21%, coming in $4 million
or 2% above our forecast, with the outperformance stemming largely from the 2.6% comp—initial productivity remained robust at 93%, but this was expected. Gross margin expanded a greater-than-anticipated 41 basis points due to lower freight costs.

FIVE guided to 2Q comps of 5-8%, which would mark the strongest performance since at least 1Q 2014. Spinner added about 60 basis points to 1Q comps in less than a month; if momentum continues at current levels, this would suggest to us a full-quarter benefit of perhaps 300 basis
points.

the new PT of $60 is up from $52.

For an analyst ratings summary and ratings history on Five Below click here. For more ratings news on Five Below click here.

Shares of Five Below closed at $51.95 yesterday.